They probably don’t admit it but we meet a lot of clients who are stuck in what we could call Business financing Purgatory… its that state of ‘ limbo’ where they aren’t sure of their funding, loan, and asset finance options .

We’re told that ‘ Purgatory ‘ is somewhat of a condition whereby one suffers and experiences temporary punishment – that then seems to be the stance many Canadian business owners take – just treading water remaining in that ‘ dark place ‘. Do they have to do that? Absolutely not!

Although not everyone agrees it’s a lack of capital, cash flow, working capital… whatever one likes to call it that seems to be top of mind for challenges in running and growing a business.

The problem is compounded by the fact that the business owner/manager in Canada constantly hears about Private Equity and Venture Capital groups who have, we’re told, almost unlimited capital in the millions/billions. The reality is though that the majority of businesses in Canada will never access this capital – and at the other end of the spectrum the bank and commercial financing industry has either consolidated or become an industry of ‘ niche ‘ financiers. (Don’t get us wrong though, some of those niche players are the ones that are going to take you out of business Purgatory!).

So at the end of the day your ability to ‘ attract ‘ debt and asset monetization strategies are probably , more often than not , going to be the ones that make you more successful in business and asset finance.

At the top of the pile in achieving the right amount of financing is your ability to show that you’ve got some measureable results .However not every company today can demonstrate great balance sheets and solid income.

But the good news here is that if you are able to demonstrate a credible financial position and financial reporting that hints toward the ‘ big picture ‘ you’re in a much better position to get the financing you need.

Business in Canada, rightfully or wrong tends to associate financing with our Canadian chartered banks. That’s not a bad thing, but as we talk to clients its clear they don’t see the other end of the spectrum too clearly, which is simply that a whole range of other financing strategies exist outside commercial banking.

These solutions provide you with:

Bridge loans
Asset based credit lines
Working capital term loans – secured and unsecured
Equipment Financing
Supply Chain /PO Finance
Tax Credit Monetization
Mezzanine Financing…

and on it goes!

Canadian business is often caught in a dual trap – they arent aware of those other solutions and, more unfortunately they don’t have the info ready to be assessed for any of those solutions. Even simple things like a business plan or cash flow projection are often missing.

So, our bottom line today? Explore your options for capital, understand what you need to qualify, consider asset monetization strategies as an option to taking on debt, and reach out and seek a trusted, credible and experienced Canadian business financing advisor who can assist you with financing decisions that remove you from business Purgatory!